ETH/USD Price Forecast December 4, 2017, Technical Analysis

Ethereum remains very volatile, rallying during the Friday session, pulling back, and then rallied again. Perhaps this is due to the US dollar getting pummeled in the Forex world. · FX Empire

Christopher Lewis

Updated Fri, Dec 1, 2017, 10:26 PM

Ethereum continues to be very volatile, as the Friday session saw a move towards the $460 handle, but then pulled back a little bit to find buyers even later. If we can clear the $460 level, the market is likely to go towards the $500 level again, which of course is going to be a magnet for price as it is a large, round, psychologically significant number. With that being the case, I am a buyer of a breakout to the upside, but I also recognize that we could pull back as we are overbought on the Stochastic Oscillator, which means that we could pull back as low as $400 in the short term to look for buyers, and even longer-term chart suggests that we could go to the $360 level. In general, I believe that markets continue to be very choppy, and I do think that eventually Ethereum goes higher, but the recent shakeup in the Bitcoin market has done very little to add to confidence.

If we were to break down below the $360 level, the market would breakdown rather significantly, and at that point in time I would probably start shorting. I don’t think that’s going to happen though, least not without some type of major catalyst that I don’t see on the horizon. We will almost undoubtedly try to retest the $520 level given enough time, as the market has the proclivity to buy the dips. One thing that does concern me though is that volume is very light, which does absolutely nothing to help with confidence either. I believe that the easy days of making money in Ethereum may be behind us, at least as far as the momentum would be concerned and the doubling of your profits every few weeks or whatever. Add to your position slowly, and add only when you are being proven correct. Buying on the dips does help, but only in a slow incremental manner as the volatility could pick up again in the blink of an eye, and the next thing you know you could be down 20%. Leverage is not something you should be messing around within this situation, as that recent shakeout would’ve wiped out most accounts.